Wah Seong Corporation Berhad Annual Report 2017

GOVERNANCE WAH SEONG CORPORATION BERHAD ANNUAL REPORT 2017 33 AUDIT COMMITTEE 3.7 Capital Expenditure On 28 February 2017, 30 May 2017, 28 August 2017 and 29 November 2017 respectively, the AC reviewed the capital expenditures on a quarterly basis to monitor and ensure that the expenditures were within the budget being approved for 2017. 3.8 Others a. On 7 April 2017, the AC reviewed the Information Technology System and the SAP system of the Oil and Gas Division of the WSC Group. b. On 30 May 2017, the AC reviewed the Business Continuity Plan. c. The AC had been progressively reviewing the strategic investments of the WSC Group during the financial year under review and in making the necessary decisions. d. The AC had been progressively reviewing the internal control issues of the WSC Group and the relevant improvements and recommendations as highlighted by the both the External and Internal Auditors. 4. INTERNAL AUDIT FUNCTION The AC is assisted by the Group Internal Audit in providing an independent and objective assessment on the adequacy and effectiveness of risk management, financial and operational control, and governance processes of the WSC Group. The Group Internal Audit is independent from the activities or operations of all operating units of the WSC Group. Its principal responsibility is to conduct periodic and systematic reviews on the WSC Group’s key operations so as to provide reasonable assurance that the risk management and internal control system continue to operate satisfactorily and effectively within the WSC Group. A summary of the Internal Audit activities during the financial year under review is as follows: a. prepared and presented the annual audit plan for review and approval by the AC; b. performed financial and operational audits on business units of the Group to ascertain the adequacy and integrity of their system of internal controls and made recommendations for improvement where weaknesses were found; c. conducted follow-up review to determine the adequacy, effectiveness and timeliness of actions taken by the Management on audit recommendations and provided updates on their status to the AC; and d. performed special reviews requested by the Management and/or the AC. After each engagement, the observations and recommended opportunities for improvement were communicated to the respective Management for their response and corrective actions, if necessary. On quarterly intervals, the internal audit reports with the Management’s responses were submitted to the AC for their deliberation. The total cost incurred by the Internal Audit Function for 2017 was RM774,596 (2016: RM897,572).